Pomona has brighter outlook for budget in new year

POMONA - After several years of budget cuts, the city's financial picture is looking a bit better, but no one should be preparing a celebration just yet, officials said.

A slight uptick in revenue is expected through the end of the current fiscal year, according to a city staff report. The projections call for the city to receive $79.47 million in revenues, about $879,000 more than budgeted for in the 2012-13 general fund budget, according to the report.

Pomona has downsized in recent years by more than 200 employees, outsourced functions including park maintenance, turned the library staff into part-timers and closed the downtown fire station.

The city "will be in the black although by small amounts," Councilwoman Cristina Carrizosa said about the projections.

The revenue-based staff report was meant to give council members preliminary estimates of the city's finances, Finance Director Paula Chamberlain said.

It appears "we're better off than we were last year," Chamberlin said.

However, about $163,000 in spending increases attributed to building and safety contract services and Police Department overtime expenses are also expected.

An additional report with preliminary revenues and expenditures estimates is expected to be presented to the council at the end of the month.

Although some of the city's revenue appears to be gradually increasing, the report calls for caution.

Revenue projections for the 2013-14 fiscal year could be close to $2 million higher than those in the current fiscal year, but some expenses, such as the city's contract for fire services with the Los Angeles County Fire Department and employee retirement costs, are expected to increase, Chamberlain said.

The county Fire Department projects an increase in costs for services in 2013-14, Chamberlain said. The 2012-13 fiscal year budget for fire service is $21.9 million. The figure includes $275,000 in revenue.

Sales tax has started to creep up in the city as has property tax, the latter being the city's top source of revenue, Chamberlain said.

The city's top sales-tax source are service stations followed by the sales of building materials, she said.

Developers are also beginning to show some interest in building in the city.

Carrizosa said a development of 48 single-family homes near Lexington and Towne avenues in her district is moving forward. The development had gone through the approval process some time ago but needed to secure financing, she said. The financing is now in place and construction will soon be under way.

The budget projections don't mean the city will be in a position to go on spending or hiring sprees but it will provide some financial breathing room, Carrizosa said.

That means the city will be in a better position to focus on such projects as sidewalks, she said.